The Telstra Corporation Ltd (ASX: TLS) share price tumbled 10.5% lower during the month of March.
Whilst ordinarily this would be a disappointing decline, it was actually significantly better than the S&P/ASX 200 Index (ASX: XJO).
During the same period the benchmark index fell a disappointing 21.2%.
Why did Telstra outperform the market?
Investors were holding onto the telco giant's shares last month after it released a COVID-19 update.
That update revealed a number of important measures the company intends to take to support the Australian economy during the COVID-19 outbreak.
This includes putting on hold any further job reductions, recruiting an additional 1,000 temporary contractors, bringing forward $500 million of capex from the second half of FY 2021 into calendar year 2020, and providing relief to small business and consumer customers.
This was on top of other previously announced measure such as unlimited data allowances on fixed broadband and extra mobile data for Telstra's consumer and small business customers to support self-isolation and work from home initiatives.
What impact did this have on its financial performance?
Despite the coronavirus crisis and the aforementioned measures it is taking, Telstra demonstrated its defensive qualities by revealing that it remains on track to achieve its FY 2020 guidance.
This went down particularly well with the market, especially given the countless guidance withdrawals that were announced last month.
Another positive is that with its free cash flow guidance on track to be achieved, Telstra should be in a position to maintain its 16 cents per share fully franked dividend in FY 2020. This equates to a 5.1% dividend yield based on its current share price.
Should you buy Telstra's shares?
Although Telstra outperformed the market last month, I still think its shares are great value.
Especially for investors that are searching for a source of income in this low interest rate environment.
Overall, I class Telstra as a buy and would choose it ahead of rivals TPG Telecom Ltd (ASX: TPM) and Vocus Group Ltd (ASX: VOC).
